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USD/CAD seen trading sideways into year end, Rabobank says
Rabobank notes the pair has risen 2.7% from recent lows to 1.414, despite 14-day RSI readings that point to overbought conditions.
FXStreet, citing Rabobank’s FX Strategy team, says USD/CAD has continued to grind higher, rising 2.7% from recent lows to 1.414. The 14-day RSI is described as signaling overbought conditions.
Rabobank expects any pullback to be short-lived, and ultimately forecasts USD/CAD trading in a range of 1.41 to 1.42 through year end. The bank also points to CAD net shorts rising again after a recent collapse.
The commentary frames the move as being supported by a safe-haven US dollar, amid US yields staying near multi-year highs. The report also links the broader US dollar backdrop to inflation risks from higher oil prices and rising expectations for an October Fed rate hike, alongside the US-Iran standoff.